Adidas today "confirmed its outlook for the year coming off double-digit top- and bottom-line growth" in Q1, according to Katya Foreman of WOMEN'S WEAR DAILY. Net profit for the three months ending March 31 rose 18.6% year-over-year to US$647M, boosted by an 11% increase at its flagship Adidas brand and "double-digit increases in the running, football and training categories, as well as at Adidas Originals." Reebok sales dipped 3% due to "declines in the training and running categories." Adidas saw "double-digit growth" in North America, Asia-Pacific and Latin America, "offsetting declines" of 4% in emerging markets and 16% in Russia (WWD.com, 5/3). CNN MONEY's Alanna Petroff notes the trends have "produced a remarkable run for Adidas: Its North America sales have now increased by 20% or more in nine consecutive quarters." Adidas CEO Kasper Rorsted said that the company's overall performance was "in line with his expectations." He said that the company would "continue to focus on North America, China and e-commerce." Nike reported North American sales of $15.2B in FY '17 versus $5.1B for Adidas. However, momentum is with Adidas: Nike sales "fell 6% in North America during the three months ended February," and Under Armour reported that its North America revenue "dropped 1% in the first quarter" (MONEY.CNN.com, 5/3).
LOOKING AHEAD: REUTERS' Emma Thomasson notes Adidas "expects only a limited impact from the upcoming soccer World Cup in Russia, where the economy is in the doldrums, also predicting that its sales in Western Europe will stall in the second quarter." Rorsted said that the soccer competition was still "very important for promoting the brand but had become less crucial for driving sales." Adidas, which is the "official sponsor of the World Cup and is providing shirts to 12 of the 32 teams, sold a record" of more than $2.4B of soccer gear in '14 (REUTERS, 5/3).
